topic Re: How to bump scores? in Mortgage Loans

How to bump scores?

kentbr — Fri, 07 Aug 2020 01:54:28 GMT

Hello,

I would like to apply for a loan in the next month and need some recommendations on how to bump my middle score to at least 680. Below are my mortgage scores from my August 3B:

Eq 655

Tran 690

Exp 652

I have been paying down my cc debt over the past few months which has taken some of my savings. I have about 5k left. Single parent, Income 60k. Looking to purchase a home between 175-200k. Indiana does have 6% dpa program that can be used if I take out FHA loan and keep DTI less than 50%. I'm hesitant because I just finished my Master's and have about 80k in student loans so even though my IBR payment is 0 they use 1% for my student loan payment calculation which kills my DTI.

Cap1 0/600

Cap1 234/1100 (25 min pay)

Credit One 149/500 (30 min pay)

Discover 0/500

Milestone 0/300

Chap 7 BK discharged June 2013. No collections. I have two 30 day lates and a 60 day late from Nov 17, Dec 17, Jan 18 Nissan Finance (monthly payment 448). Three charge offs from 2017 as well. 2017 was a rough year!

Do you think azeo will help? Discover is secured. Hoping it will unsecure and potentially cli. If not, do you think adding money to the limit will help? That statement doesn't cut until 27th so I have time to increase. Any suggestions?

Thanks in advance!

Re: How to bump scores?

AllZero — Fri, 07 Aug 2020 01:59:35 GMT

@kentbr Do the AZEO. No need to add to the secured deposit.

I would also recommend in sending out Good Will letters for your delinquencies. The Saturation Technique: Best GW adjustment odds.

In addition, depending on the size of the charge off debt, you might want to address those too.

Re: How to bump scores?

kentbr — Fri, 07 Aug 2020 02:09:03 GMT

@AllZero Thank you! The balances on the charge offs show as 0, but they range from 3000-500 each so nothing too bad if I have to pay. I will definitely do azeo and try goodwill letters.

Re: How to bump scores?

AllZero — Fri, 07 Aug 2020 02:26:28 GMT

@kentbr If balance shows $0, original creditor may have sold off the debt to a collection agency. Be aware that collections do pop up when you least expect it, especially when your lender hard pulls your credit report. Be prepared to tackle any surprises.

P.S. Congratulations on finishing your Master's!

Re: How to bump scores?

TheKid2 — Fri, 07 Aug 2020 02:53:10 GMT

Just make sure on your reports that you don't have any past due balances on the COs. There should be remarks on the account to help determine what happened. Hopefully, you at least settled them and have a record of it. With settled COs myself, I will say that I didn't see any mortgage score changes from AZE2 to AZEO. But, in my case overall Util was very low at AZE2. Leave a small balance on Cap1 or Cred1 and have the rest of the cards report $0. You can use them, just pay them off in full each month. This helps on many fronts with mortgage approval - eliminate debt, better DTI, certainly will not hurt your scores, etc. Just don't let them ALL report $0.

Re: How to bump scores?

kentbr — Fri, 07 Aug 2020 03:08:26 GMT

@TheKid2 Thank you! I am going to try azeo and see if it helps.